| This dissertation examines the potentials and incentives for, and impediments to, regional integration in the Middle East, based on the conceptual paradigm of economist Jagdish Bhagwati, who defines regionalism as preferential trade among a subset of nations, requiring a catalyst to integration, as well as trade complementarity among participating economies. The empirical evidence utilized in this research shows that the region fails to meet these requirements, because its political economy is in poor health, a catalyst is missing, there is no trade complementarity, and compounding that is the complexity of inter-Arab relations, which have worsened since the 1991 Gulf War.; Regionalism might be a means for strengthening and liberalizing developing economies. Therefore, the economic incentives for regionalism in the Middle East may be attractive enough to consider. However, the current state of inter-Arab economic cooperation remains minimal, and the political regimes tend to resist the forces of democratization, liberalization, and the demands for freer flow of labor, goods, services, and information across borders. Both the capital-poor and capital-surplus countries in the region are preoccupied with military expenditures, undermining socioeconomic development and rendering them unprepared for integration at par with the European Union (EU).; The process of socioeconomic development and increasing cooperation among regional actors requires the removal of major impediments, which the countries appear to be unwilling and ill-prepared to pursue, particularly since the 1991 Gulf War has reinforced regional disunity, instability, and insecurity. The central finding of the research stipulates that the region's political instability has negatively affected economic stability, and, together with the degree of fragmentation among the regional actors in the post-Gulf War era, the prospects for development, cooperation, and integration have been undermined. |
